House Oversight expands insider-trading probe to Hyperliquid, Crypto.com, and PredictIt
House Oversight Committee Chairman Comer sent letters on September 29 to Hyperliquid Labs, Crypto.com, and Aristotle Exchange, the operator of PredictIt, expanding a congressional probe into insider trading on prediction markets. The investigation, which previously included Polymarket and Kalshi, now demands records on identity verification, employee trades, and suspicious activity referrals across crypto-native and traditional event-contract platforms.
Platforms now face dual congressional and regulatory demands for trading records, raising the cost of compliance and legal defense. Hyperliquid and Crypto.com are crypto-native operators with lighter traditional surveillance infrastructure; they must stand up insider-trading detection or become the example that shapes legislation.
The CFTC is already probing a former lawmaker for pardon-related Kalshi bets, so any gap between what Congress finds and what platforms reported to regulators invites enforcement. PredictIt, operating under CFTC no-action relief, has the most to lose if its records show lapses; a single platform that cannot produce clean data will set the compliance bar every competitor must clear. The first subpoena or adverse finding will accelerate calls for mandatory surveillance rules.